Whether you decide to file for bankruptcy, make use of credit counseling, debt negotiation or simply continue to pay your minimum payments it is important to remember that you cannot just sit and watch the bills pile up. Ignoring your situation will only make it worse, not better. The telephone calls will continue (and get worse), the bills will pile up, and you can guarantee that at least some (if not all) of the companies you owe money to will sue you.

And once they sue you, it continues to get worse. Each creditor can:

• File a lawsuit;
• Take a judgment against you for the amount you owe, plus legal fees and court costs;
• Seize your checking and savings accounts; and
• Take 10% of your pre-tax wages directly from your pay check.

So as you can tell, it’s a bad idea to do nothing.